State-owned engineering firm Bharat Heavy Electricals Ltd (BHEL) has secured a significant contract from Nigeria's Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise for the supply and supervision of eight gas turbine generator packages. According to reports from Business Standard, the order was secured amidst intense international competition and represents the company's largest-ever single order on supply and supervision basis for gas turbine generator packages in terms of both quantity and value. The contract is estimated between ₹2,000 crore and ₹2,500 crore, marking a major milestone for the company's international business and further boosting BHEL's global visibility as an international engineering enterprise. As per Upstox, shares of BHEL traded at ₹403 apiece on the NSE at 1:30 pm on Wednesday afternoon, hovering around neutral levels despite the major contract announcement.
The comprehensive scope of work includes the manufacture and supply of eight gas turbine generator packages, along with supervision of erection and commissioning activities at the project site. As reported by Business Standard, the equipment will be manufactured by BHEL's facilities at Hyderabad and Bengaluru. The contract was placed by Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise, which is part of the Dangote Group, one of Africa's largest and most diversified business conglomerates with interests spanning oil refining, petrochemicals, fertilisers, cement, sugar, packaging and other sectors. The successful execution of this order is expected to further strengthen BHEL's global visibility and reaffirm its capabilities as an international engineering enterprise.
This contract comes on the heels of BHEL's impressive Q1 FY27 financial turnaround, with the company reporting a consolidated net profit of ₹377 crore, marking a complete recovery from a net loss of ₹455 crore in the same period last fiscal year. According to company reports, revenue from operations jumped 40.29% YoY to ₹7,697.72 crore, driven by a sharp 51.82% increase in the power segment to ₹5,919.50 crore. The company's operating EBITDA turned positive at ₹504 crore with a 6.55% margin, expanding by 1,633 basis points from the negative EBITDA of ₹537 crore in Q1 FY26. BHEL's order book expanded to ₹2,60,000 crore as of June 30, 2026, bolstered by ₹26,700 crore in fresh order inflows during Q1 FY27. As per Upstox, the company posted a turnaround at operating level with EBITDA profit of ₹735 crore versus EBITDA loss of ₹352 crore in the previous year, while achieving net profit of ₹382 crore compared to ₹455 crore in the same period last year.
This order marks a significant milestone for BHEL, being the company's largest-ever single order on supply and supervision basis for gas turbine generator packages globally. According to the company statement, this order will further enhance BHEL's visibility worldwide and demonstrate the company's capabilities as a global engineering enterprise. The contract builds on BHEL's established presence across Africa through successful execution of power sector projects in countries such as Egypt, Ethiopia, Libya, Rwanda, Senegal and Sudan, besides supplying a wide range of products and equipment to several other African nations. The company has previously executed an order for the supply and supervision of erection and commissioning of a 26 MW gas turbine generator package to the government of Cross River State, Nigeria. The successful booking of this major export order is expected to bolster investor sentiment, reinforcing BHEL's multi-year growth trajectory, with the margin profile for export supply and supervision orders typically superior to domestic EPC contracts.
BHEL has previously executed an order for the supply and supervision of erection and commissioning of a 26 MW gas turbine generator package to the government of Cross River State, Nigeria. As reported by Business Standard, the company has been manufacturing and supplying gas turbines to various customers in India and abroad for over four decades and is among the world's leading manufacturers of gas turbines and generators. The company has supplied close to 250 gas turbines, with more than 20 per cent of them delivered to overseas customers, demonstrating its engineering and manufacturing capabilities in the sector. With the total order book scaling to ₹2,60,000 crore and improving margins, BHEL is well-positioned to capitalize on both domestic power capex and global industrial demand, particularly in the lucrative African and Middle Eastern markets. As per Upstox, the company's total order book stood at ₹2.60 lakh crore as of Q1FY27, with 81% of orders from power segment, 17% from industry and remaining from exports.
